Opportunities The UAE and Saudi Arabia show the most promise in terms of skills in technology, according to the Coursera’s Global Skills Index, an in-depth report on skill trends and performance across 60 countries in the Middle East and around the world. The UAE is in the midst of a significant transition toward a technology-based economy, marked by notable advancements across various sectors. These include pioneering the use of drones for cloud-seeding operations, the introduction of a comprehensive digital strategy in Dubai with a targeted sector value add of $27.2 billion, and the establishment of the Dubai AI & Web 3.0 campus, which has already generated over 3,000 job opportunities. Moreover, the construction market in the UAE and Saudi Arabia is experiencing substantial growth driven by technology integration. As a part of its comprehensive 50-year strategy, the UAE is prioritising strategic areas such as healthcare, renewable energies, big data, and artificial intelligence. The country has already demonstrated its commitment and is making remarkable progress toward its goal of becoming a global tech hub. The UAE’s unwavering support for technology entrepreneurs and startups has resulted in significant growth, with prime examples like the Sharjah Research Technology and Innovation Park accommodating over 240 companies. KEY TAKEAWAYS • The presence of committed leadership and state-of-the-art technology and infrastructure positions GCC countries to set ambitious goals for becoming leaders in latest technologies • One of the major tech trends in the GCC involves the widespread adoption of AI and machine learning, particularly in the UAE and Saudi Arabia • The GCC governments’ proactive efforts to digitise their systems and pioneer smart city initiatives have set global benchmarks, with ongoing plans for further development
On top of this, the government has adopted the UAE Artificial Intelligence Strategy to invest in AI technologies as well as the Emirates Blockchain Strategy 2021 to promote the development of blockchain technologies. By 2024, the UAE is projected to allocate an estimated $23 billion for ICT spending alone, with Qatar’s spending expected to reach around $9 billion and Kuwait’s spending predicted to hit $10 billion in that same year. According to data from Ookla Speedtest Intelligence, the UAE is the fastest-growing 5G market globally also. Qatar has also achieved the highest average 5G download speeds within the GCC region, reaching an impressive 312 Mbps, as reported by Opensignal. Bahrain set itself apart by ranking among the top 20 countries globally in terms of fibre penetration, offering the most cost-effective fibre broadband services within the GCC. The presence of committed leadership and state-of-the-art technology and infrastructure positions GCC countries to set ambitious goals for becoming leaders in latest technologies. One of the major tech trends in the GCC involves the widespread adoption of AI and machine learning, particularly in the UAE and Saudi Arabia. A report by Oliver Wyman says that the GCC could potentially save $7 billion annually by automating routine tasks, especially in government functions like licensing, registration and tax filings. PwC’s Strategy & Middle East predicts that Saudi Arabia and the UAE will reap significant benefits from the growth of these technologies. In the UAE, nearly 75% of companies have either maintained or increased their investments in AI initiatives. Saudi Arabia is poised to lead in AI’s contribution to GDP, with an estimated $135.2 billion, while Bahrain, Kuwait, Oman and Qatar are expected to collectively contribute $45.9 billion to GDP by 2030. Further, Saudi Arabia and Kuwait have integrated digital developments into Vision 2030 and Vision 2035, respectively. Saudi Arabia has developed digital goals relating to e-commerce and financial technology (fintech) as well as established a digital skills training programme. In tandem, Kuwait’s ambitions focus on the Internet of Things (IoT) systems facilitated through the development of telecommunications, notably fibre optic networks. Additionally, Saudi Arabia plans to train 20,000 data and AI specialists by 2030 to support its AI-related goals, while Kuwait is embracing AI to elevate its urban innovation efforts. Likewise, Qatar has a similar initiative, Smart Qatar or TASMU, that realises technological solutions and cooperation across sectors consistent with its Vision 2030. Similarly, Bahrain’s Digital Government Strategy 2022 emphasises the transformation of services through digital technologies and Oman’s eOman focuses on IT industry development, ICT infrastructure and eGovernment. Challenges Digital technology has been key to GCC policy. Commercial law reform, labour reforms, and investment process improvements have helped the region boost its non-oil-based economy. Digital technology adoption and innovation define the region, and it has become a destination of choice for global talent and investors. Digitalisation, however, does not come without challenges, with notable concern of data protection and user privacy. Kuwait and Oman lack specific data protection laws while Saudi Aran and the UAE have data protection laws well in place. Saudi Arabia’s regulatory cloud computing framework is among only a few in the world and the Kingdom’s privacy and data protection frameworks are partially aligned with the European general data protection regulation (GDPR). Another challenge is cybersecurity and the potential of cyber-attacks. With increased digitalisation, the GCC countries have become more vulnerable to cyber threats. In 2012, the Saudi oil company Aramco was subject to a software attack that significantly interrupted the company’s IT infrastructure. Bahrain has also reported several cyberattacks such as in July 2019 when Iranian hackers attacked its National Security Agency, the Ministry of Interior and the Electrical and Water Authority. This comes despite their high ranking in the Global Cybersecurity Index, which assesses countries’ commitment to cybersecurity. Qatar set up the National Cyber Security Committee in 2013 to implement the National Cyber Security Strategy and has since introduced laws dedicated to cybercrime prevention. Yet another challenge persists, particularly with regard to innovation and talent acquisition. Finding and recruiting tech professionals such as machine learning engineers, data solutions experts and supply chain architects remains a hurdle in some GCC countries. However, these challenges are diminishing as the region witnesses the expansion of data centre facilities and telecom operators rush to introduce advanced 5G networks capable of supporting data-intensive products and services.
The UAE has announced 50 initiatives aimed at stimulating and diversifying its economy, with a goal of attracting $150 billion in new foreign investments over the next decade. These initiatives encompass new visa schemes designed to attract residents and skilled workers, as well as a focus on increased investment in advanced industry sectors and technology education. The future of the GCC’s tech economy appears exceedingly promising, with continued support for innovation and an unwavering commitment to transforming ideas into reality in order to facilitate development and shape a better future. The specific reasons why technologists should seriously consider the GCC as a preferred place to work and live are abundant opportunities, favourable business climate, high quality life, attractive salaries, and excellent work-life balance.
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INVEST GCC: DAVOS 2024
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